Bristol-Myers sells diabetes alliance assets to AstraZeneca for $4.1 billion

Confirming recent rumors, Anglo-Swedish drug major AstraZeneca (LSE: AZN) revealed this morning that it will acquire the entirety of Bristol-Myers Squibb’s (NYSE:BMY) interests in the companies’ diabetes alliance for an initial consideration of $2.7 billion on completion and up to $1.4 billion in regulatory, launch and sales-related payments.

AstraZeneca has also agreed to pay various sales-related royalty payments up until 2025. In addition, AstraZeneca may make payments up to $225 million when certain assets are subsequently transferred.

AstraZeneca, already partnered with B-MS on certain diabetes products, but, when the US firm agreed to acquired Amylin with an increased offer of around $5.2 billion last year – a total transaction cost of around $7 billion including Amylin debts (The Pharma Letter July2, 2012), it chipped in $3.4 billion to B-MS for stake in the action. AstraZeneca itself had been rumored to be a likely bidder for Amylin, which held rights to the exenatide franchise previously partnered with Eli Lilly.